Common use of APPLICATION OF FUNDS AT CLOSING Clause in Contracts

APPLICATION OF FUNDS AT CLOSING. On the Effective Date, the $2,000,000 payment by MTP-South Tower pursuant to Section 1.7, shall be released by Chicago Title pursuant to the Recording Instructions and applied or disbursed by Aetna for obligations of MTP-South Tower as follows: 1.8.1 $88,800 shall be applied by Chicago Title for the title insurance premium for the policy or endorsement and recording fees provided for in Section 9.3 below; 1.8.2 $388,934 shall be disbursed to MTP-Development as payment in full of all previously held-back leasing commissions owed by MTP-South Tower, which sum shall be paid by MTP-South Tower to MTP-Development in satisfaction of all such obligations (and MTP-South Tower hereby represents and warrants that such sum (of which $258,514 was 50% of the commission earned in connection with the February 6, 1995 lease to The Los Angeles Unified School District, $51,176 was 50% of the commission earned plus certain other fees earned in connection with the March 8, 1995 lease to Finova Capital Corporation, and $79,244 was 100% of the commission earned in connection with the July 10, 1995 lease to The Boston Consulting Group) represents the full amount of all accrued leasing commissions and other fees owed by MTP-South Tower to MTP-Development as of the date of this Agreement); and 1.8.3 following the disbursements described above, the balance of such $2,000,000 shall be disbursed to Aetna, and shall be applied by Aetna: 1.8.3.1 first, for reimbursable costs of Aetna, to the extent not disbursed to Aetna from the Deposit Account pursuant to the terms of the Lockbox Agreement prior to the Effective Date, including, without limitation, such sums as required to reimburse Aetna's legal fees and expenses in connection with the Loan for the period following March 31, 1996 (the last date for which such fees and expenses were reimbursed by Aetna as provided in Section 1.6 above) through the Effective Date (without limitation with respect to fees and expenses for subsequent periods, such fees and expenses for the period from April 1, 1996 through August 31, 1996 were approximately $51,200); and 1.8.3.2 the remaining amount shall credited by Aetna on the Effective Date to reduction of the principal balance of the Loan.